The US dollar complex dominates the world economy, but the United States currently has no competition against it. The rate of change of the debt to GDP ratio for the G8, G20 and the rest of the world is a better indicator of global financial trends than just the United States' debt alone.
The US faces a major debt problem, currently standing at $30 trillion. Even if interest rates stabilize at 3%, the US will still have to service a trillion dollars a year of debt, which could be allocated towards other areas.
Many individuals spent the pandemic monetary stimulus checks on discretionary things that were not necessary. Those who saved the stimulus should consider investing in starting their own business or finding opportunities.
The use of AI for market trading replaces human knowledge with automated processes that may misinterpret data, significantly changing the accuracy of earnings estimates for companies. The upcoming quarterly earnings reports may reveal that changes are necessary in reassessing earnings estimates in light of the use of AI.
There are concerns that if the stock market continues to rise and the monetary conditions become less restrictive, this could result in risky investments and further inflation. It has been suggested that a 5-6% jobless rate for five years is necessary to reach the inflation rate target of 2-3% or below 2%.
The U.S. is facing troubling levels of debt that have only increased during the pandemic and risk causing significant harm to the economy. In order to address these issues, excess money must be pulled back and interest rates raised, but this will come with challenges.